Question

4. When is the most recent time that inflation was truly a major issue in the U.S. economy

Answer 1

Inflation becomes a major issue when it is higher than the acceptable level of 2 to 3% and can't be controlled easily. Last time Us experienced major inflation challenges in the 1970s ( 1974 to 1983 ). That was the time when the world first faced the oil crisis. The oil supply shock increased the price of the inputs and increased the prices which were outside the control of any authority.

It resulted in the failure of Keynesian demand-side economy and Reaganomics was born. People focused more on the reduction of input cost and reduce inflation rather than managing supply.